OSLO, NORWAY — Orkla Foods Danmark A/S has reached an agreement to acquire a majority stake in Stelios Kanakis Industrial and Commercial S.A. Based in Acharnes, Greece, Kanakis supplies bakery, confectionery and ice cream ingredients in Greece.

Under terms of the agreement, Orkla intends to acquire approximately 65.8% from Stelios and Maria Kanakis at a purchase price of €4.35 per share. The company also has made a voluntary tender offer to all Kanakis shareholders at an offer price of €4.36 per share.

Orkla said completion of the transaction is subject to it acquiring 41.8% of the shares in Kanakis from minority shareholders following announcement of the tender offer. If Orkla attains an ownership interest of more than 90% in Kanakis, the company said a “squeeze-out” process will be implemented, and the company will be delisted. At the same time, 20% of the shares will be sold back to the Kanakis family at the same price as in the voluntary tender offer. Once the transactions are complete, Orkla said it will own 80% of the company and the Kanakis family will own 20%.

“Kanakis has a leading position in our core categories, in addition to a broad-based network of customers and suppliers who are well-known to Orkla Food Ingredients,” said Johan Clarin, executive vice-president of Orkla Foods Danmark and chief executive officer of Orkla Food Ingredients. “The company is well-positioned in a region that is seeing good growth.”

Kanakis was founded in 1985. The company has 73 employees and had sales of €20.2 million and EBIT of €3 million in 2018.